The stockholder's equity section of Pink Company's December 31, 2011 balance sheet consisted of the following: Ordinary shares, par value P30 per share, authorized, Issued and outstanding Share Premium 100,000 shares P3.000.000 1,200,000 Retained earnings (deficit) Total (2,100,000) P2.100,000 On January 2, 2012, Pink put into effect a stockholder-approved quasi-reorganization by reducing the par value of the shares to P10 and eliminating the deficit against the share premium.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Immediately after quasi-reorganization, what amount should Pink report as share premium?


a. 3,200,000
b. 2,100,000
c. 1,200,000
d. 1,100,000

The stockholder's equity section of Pink Company's December 31, 2011 balance sheet consisted of the
following:
Ordinary shares, par value P30 per share, authorized,
Issued and outstanding
100,000 shares
P3.000.000
Share Premium
1,200,000
Retained earnings (deficit)
Total
(2,100,000)
P2.100,000
On January 2, 2012, Pink put into effect a stockholder-approved quasi-reorganization by reducing the
par value of the shares to P10 and eliminating the deficit against the share premium.
Transcribed Image Text:The stockholder's equity section of Pink Company's December 31, 2011 balance sheet consisted of the following: Ordinary shares, par value P30 per share, authorized, Issued and outstanding 100,000 shares P3.000.000 Share Premium 1,200,000 Retained earnings (deficit) Total (2,100,000) P2.100,000 On January 2, 2012, Pink put into effect a stockholder-approved quasi-reorganization by reducing the par value of the shares to P10 and eliminating the deficit against the share premium.
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